Coinbase Accidentally Saves Unencrypted Passwords of 3,420 Customers

Can anyone explain why this wouldn’t happen with Nash ? Zero knowledge proofs ?
Nash must be saving passwords (in some form) id presume.
Perhaps addressing Coinbase’s issues …and why it wouldn’t happen to Nash would help in understanding Nash’s authentication system.

Thanks

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“effectively making it impossible for the Nash servers to receive unencrypted passwords”

…Surely if their servers did they would be considered custodians of said wallets.

Maybe this will help get a better understanding…

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and on smartphones its very safe, because
the infrastructure has been around for some time
https://developer.apple.com/documentation/security/keychain_services (no idea if they will use it, serves as an example)